Market Sense and Sentiment

[bbgold]

Yes, you could say that it is hindsight. If you look at the times when I post most of my Put or Call Buys or Sells they are Usually fairly close to the HOD or LOD. Hindsight is Indeed the reason. I usually base where the HOD or LOD is on the resistance levels that seem to come up on the charts. I have been trying to follow the rule that previous resistance becomes support and that previous support becomes resistance. I use these price targets along with the reaction of the price to the moving averages. The theory is that whenever the price moves too far away from the moving average then it will move back to it, either high or low. Whenever the price is too high it moves back down, too low and it moves back up. Trending upward and it moves down to the EMA and heads back Up, trending down and it moves up to the EMA and heads back down. To find the HOD or LOD then becomes a matter of watching the price reaction to the moving average and the targeted support and resistance levels. Here is the three month chart and notice how the previous resistance levels became support and the previous support, once broken, became resistance. Try drawing a line from the lows to the lows and the highs to the highs. This can be reduced down to a one month chart or a 1 day chart. At least this is the theory that we are Trying to use here to target the index trades. Bernard and I are fairly new to the index options though so please feel free to offer any support or criticism to what we are posting here. We are still trying to learn if we are correct in our predictions or not so any comments that you have will be appreciated.
Good Luck Don! Sincerely, Bob :^)